Investment Management
Once a client has created a personal financial plan, his/her investments can be used to deliver it.
10. Buy-and-Hold Investment Philosophy —
Voyager's investment approach has been the backbone of our clients' successes. While actively managed portfolios tend to under-perform the market, the passive "buy and holdquot; approach has delivered consistent market returns over the long-term.
11. Global Diversification —
When investing in a portfolio of mutual funds, that portfolio may hold more than 13,000 securities from around the globe; therefore, a client's portfolio is extraordinarily diversified. The risk of exposure to any one company is thereby extremely low.
12. Low Fee Investment Vehicles —
While the average mutual fund's annual fees may be 1.0% and up, expense ratios for passive portfolios range from 0.16% to 0.35%. Market returns cannot be guaranteed, but spending less for the investments will leave more in the end.
13. Institutional Investments —
Voyager investment portfolios contain institutional funds which have lower expense ratios than retail funds. These funds provide multiple asset class exposure.
14. Engineered Portfolio Design —
The portfolios are professionally designed on the basis of academic research. This helps dampen the negative effects of adverse downward markets, while at the same time providing opportunities to gain when equities rise again.
15. Tax-Efficient Investments —
For taxable investments, Voyager makes use of investments that are tax-managed, thus making them more "tax-friendly".
16. Asset Allocation —
Investment return is driven mostly by asset allocation-- the stock to bond ratio. Our professional staff is prepared to guide clients in selecting the portfolio with the risk and return profile that meets their needs.
17. Asset Location —
Stock, bond, commodity, and REIT funds' taxable distributions vary. Generally, stocks create less taxable income than bonds do. Our staff researches the tax burden and arranges assets in the portfolio to maximize long-term, after-tax return.
18. Tax Loss Harvesting —
While no one enjoys bear markets, Voyager may replace an asset class fund that has lost value, and substituting a similar fund that has lost value and substitute a similar fund. The realized loss can then be offset with future capital gains or reduce a limited amount of ordinary income.
19. Rebalancing —
This valuable service adds return and reduces risk. By selling a portion of the portfolio assets when the asset allocation agreed upon has risen above target, and buying additional assets that have fallen below target, balance is maintained. This removes the emotional ingredient that can derail investors' progress.